By Jerry J. Weygandt
Accounting Principles 11th edition, through Weygandt, Kimmel, and Kieso offers a transparent creation to monetary accounting that's filled with genuine global examples which are proper to scholars' lives. The crew for fulfillment authors comprehend the place scholars fight during this path and feature built a studying procedure that illustrates the accounting cycle and key transactions, whereas giving them the instruments to use their studying via pattern workouts in the course of the chapter. via increasing assurance of IFRS, this version retains scholars on the leading edge of world matters that effect their destiny careers in company and accounting.
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A balance sheet reports the assets, liabilities, and owner’s equity at a specific date. 4. A statement of cash flows summarizes information about the cash inflows (receipts) and outflows (payments) for a specific period of time. HELPFUL HINT The income statement, owner’s equity statement, and statement of cash flows are all for a period of time, whereas the balance sheet is for a point in time. 1. These statements provide relevant financial data for internal and external users. Illustration 1-9 (page 21) shows the financial statements of Softbyte.
4. True. 5. False. The cost principle dictates that companies record assets at their cost. Under the cost principle, the company must also use cost in later periods as well. ✔ Review the basic concepts learned to date. ✔ Develop an understanding of the key terms used. Related exercise material: E1-1, E1-2, E1-3, E1-4, and DO IT! 1-1. ✓ The Navigator ACCOUNTING ACROSS THE ORGANIZATION How Will Accounting Help Me? ” It should help you a great deal, because a working knowledge of accounting is desirable for virtually every field of endeavor.
Neal, Capital, September 30 HELPFUL HINT Note that final sums are double-underlined. −0− 17,750 17,750 1,300 $16,450 SOFTBYTE Balance Sheet September 30, 2010 Assets $ 8,050 1,400 1,600 7,000 $18,050 Cash Accounts receivable Supplies Equipment Total assets 2 Liabilities and Owner’s Equity Liabilities Accounts payable Owner’s equity R. Neal, Capital Total liabilities and owner’s equity 3 $ 1,600 16,450 $18,050 SOFTBYTE Statement of Cash Flows For the Month Ended September 30, 2010 Cash flows from operating activities Cash receipts from revenues Cash payments for expenses Net cash provided by operating activities Cash flows from investing activities Purchase of equipment Cash flows from financing activities Investments by owner Drawings by owner Net increase in cash Cash at the beginning of the period Cash at the end of the period $ 3,300 (1,950) 1,350 (7,000) $15,000) (1,300) 13,700 8,050 0 $ 8,050 HELPFUL HINT 1.